-- Bitcoin surpassed $71,000 during Asian trading hours, up 5% in 24 hours, leading to significant trading volume and #liquidation of over $143 million in short positions.
-- Rally was driven in part by whale activity on Binance and significant inflows into Bitcoin -ETF, which has seen a net gain of 47,000 $BTC
over the past two weeks .
-- The growth is being driven by the upcoming US election and traders are betting on optimistic market conditions regardless of the outcome.
Bitcoin climbed above $71,000 on Tuesday morning in Asia, leading a broader market move, nearly a week before the U.S. election, which traders largely see as a catalyst for market growth regardless of who wins.
According to CoinGecko data, #BTC☀ has risen 5% in the past 24 hours, breaking through key resistance at $70,000 on trading volume of $48 billion, nearly double Monday's volume.
The move led to the liquidation of more than $143 million in shorts or bets against higher prices over the past 12 hours, which may have helped drive prices higher as traders closed losing bets. According to CoinGlass, BTC short positions lost $73 million, followed by $39 million in $ETH
shorts .
CryptoQuant community analyst Mignole attributes the buying demand in part to the whales (a colloquial term referring to influential traders) on the Binance crypto exchange, who appear to be net buyers of the asset, mostly during Asian hours.
Bitcoin exchange-traded funds (ETFs) have further fueled demand, generating net inflows of 47,000 BTC over the past two weeks.
Major cryptocurrencies led by Dogecoin (DOGE) jumped higher. DOGE jumped 15% amid continued popularity of Trump led by Shiba Inu (SHIB) up 8%. Ether (ETH) is up 4.9%, while ADA Cardano, SOL Solana and BNB Chain $BNB
are up more than 3%.
The broad CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market capitalization, rose 3.3%.
Tuesday's rise came amid a change in tone ahead of the November election, with traders expecting BTC to set new highs regardless of a Republican or Democratic victory in the U.S. presidential election.
Traders have long perceived Republican Donald Trump's victory as a catalyst for growth for the industry, given his pro-cryptocurrency stance and promises to make the U.S. the center of Bitcoin .
On the other hand, Democrat Kamala Harris made no such promises but said she would introduce regulations to protect certain groups. However, some say the asset is poised to rise either way as several macroeconomic factors are at play.
Crypto traders are increasing their bets that Bitcoin will hit new highs by the end of November. Options expiring on November 8 have the highest open interest at the $75,000 strike price level, indicating a key market focus area for this period.
